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HF 520

as introduced - 89th Legislature (2015 - 2016) Posted on 02/19/2015 04:36pm

KEY: stricken = removed, old language.
underscored = added, new language.
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A bill for an act
relating to alcohol; establishing craft wineries; amending Minnesota Statutes
2014, sections 340A.101, subdivision 11; 340A.315.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 340A.101, subdivision 11, is amended to
read:


Subd. 11.

deleted text beginFarmdeleted text endnew text begin Craftnew text end winery.

"deleted text beginFarmdeleted text endnew text begin Craftnew text end winery" is a winery deleted text beginoperated by
the owner of a Minnesota farm and
deleted text end producing table, sparkling, or fortified wines from
grapes, grape juice, other fruit bases, or honey with a majority of the ingredients grown or
produced in Minnesota.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2014, section 340A.315, is amended to read:


340A.315 deleted text beginFARMdeleted text endnew text begin CRAFTnew text end WINERY LICENSE.

Subdivision 1.

Licenses.

The commissioner may issue a deleted text beginfarmdeleted text endnew text begin craftnew text end winery license to
the owner or operator of a deleted text beginfarmdeleted text end new text begincraft new text endwinery located within the state and producing table,
sparkling, or fortified wines. Licenses may be issued and renewed for an annual fee of
$50, which is in lieu of all other license fees required by this chapter.

Subd. 2.

Sales.

A license authorizes the sale, on the deleted text beginfarmdeleted text end new text begincraft new text endwinery premises,
of table, sparkling, or fortified wines produced by that deleted text beginfarmdeleted text end new text begincraft new text endwinery at on-sale or
off-sale, in retail, or wholesale lots in total quantities not in excess of 75,000 gallons in
a calendar year, glassware, wine literature and accessories, cheese and cheese spreads,
other wine-related food items, and the dispensing of free samples of the wines offered
for sale. Sales at on-sale and off-sale may be made on Sundays between 10:00 a.m. and
12:00 midnight. Labels for each type or brand produced must be registered with the
commissioner, without fee prior to sale. A farm winery may provide samples of distilled
spirits manufactured pursuant to subdivision 7, on the deleted text beginfarmdeleted text end new text begincraft new text endwinery premises, but may
sell the distilled spirits only through a licensed wholesaler. Samples of distilled spirits
may not exceed 15 milliliters per variety.

Subd. 3.

Applicability.

Except as otherwise specified in this section, all provisions
of this chapter govern the production, sale, possession, and consumption of table,
sparkling, or fortified wines produced by a deleted text beginfarmdeleted text endnew text begin craftnew text end winery.

Subd. 4.

Minnesota products.

If Minnesota-produced or -grown grapes, grape
juice, other fruit bases, or honey is not available in quantities sufficient to constitute
a majority of the table, sparkling, or fortified wine produced by a deleted text beginfarmdeleted text endnew text begin craftnew text end winery,
the holder of the deleted text beginfarmdeleted text endnew text begin craftnew text end winery license may file an affidavit stating this fact with
the commissioner. If the commissioner, after consultation with the commissioner of
agriculture, determines this to be true, the deleted text beginfarmdeleted text endnew text begin craftnew text end winery may use imported products
and shall continue to be governed by the provisions of this section. The affidavit is
effective for a period of one year, after which time the deleted text beginfarmdeleted text endnew text begin craftnew text end winery must use the
required amount of Minnesota products as provided by subdivision 1 unless the deleted text beginfarmdeleted text endnew text begin craftnew text end
winery holder files a new affidavit with the commissioner.

Subd. 6.

On-sale licenses allowed.

Nothing in this section or in any other section of
law prevents a deleted text beginfarmdeleted text endnew text begin craftnew text end winery from obtaining a separate on-sale license and operating a
business establishment that utilizes that license in conjunction with and within the physical
facilities of the winery and its buildings.

Subd. 7.

Distilled spirits permitted.

deleted text beginFarmdeleted text endnew text begin Craftnew text end wineries licensed under
this section are permitted to manufacture distilled spirits as defined under section
340A.101, subdivision 9, which may exceed 25 percent alcohol by volume, made from
Minnesota-produced or Minnesota-grown grapes, grape juice, other fruit bases, or honey.
The following conditions pertain:

(1) no deleted text beginfarmdeleted text endnew text begin craftnew text end winery or firm owning multiple deleted text beginfarmdeleted text endnew text begin craftnew text end wineries may
manufacture more than 5,000 gallons of distilled spirits in a given year, and this 5,000
gallon limit is part of the 50,000 gallon limit found in subdivision 2;

(2) deleted text beginfarmdeleted text endnew text begin craftnew text end wineries must pay an additional annual fee of $50 to the commissioner
before beginning production of distilled spirits; and

(3) deleted text beginfarmdeleted text endnew text begin craftnew text end wineries may not sell or produce distilled spirits for direct sale to
manufacturers licensed under section 340A.301, subdivision 6, paragraph (a).

Subd. 8.

Bulk wine.

deleted text beginFarmdeleted text endnew text begin Craftnew text end wineries licensed under this section are permitted
to purchase and use bulk wine, provided that:

(1) the quantity of bulk wine in any deleted text beginfarmdeleted text endnew text begin craftnew text end winery's annual production shall not
exceed ten percent of that winery's annual production;

(2) the bulk wine under subdivision 4 shall be counted as a portion of the 49
percent of product that need not be Minnesota-grown and may be imported from outside
Minnesota; and

(3) the bulk wine must be blended and not directly bottled.

"Bulk wine," as used in this subdivision, means fermented juice from grapes, other
fruit bases, or honey.

deleted text begin Subd. 9. deleted text end

deleted text begin Agricultural land. deleted text end

deleted text begin A farm winery license must be issued for operation of
a farm winery on agricultural land, operating under an agricultural classification, zone,
or conditional use permit. Farm wineries with licenses issued prior to March 1, 2012,
are exempt from this provision.
deleted text end

Subd. 10.

Storage.

A deleted text beginfarmdeleted text endnew text begin craftnew text end winery may store finished wine and distilled spirits
in a noncontiguous warehouse location, provided that the chosen location complies
with Minnesota Rules, part 7515.0300, subpart 12, and any other state or federal
requirements. Cartage of finished goods between the deleted text beginfarmdeleted text endnew text begin craftnew text end winery and warehouse
must be continuously in the possession of a motor carrier of property as defined in section
221.012, subdivision 27, or carried in a motor vehicle owned, leased, or rented by the
deleted text beginfarmdeleted text endnew text begin craftnew text end winery.

Subd. 11.

Bulk wine or distilled spirits.

If no wholesaler is able to provide bulk
wine or bulk distilled spirits, a deleted text beginfarmdeleted text endnew text begin craftnew text end winery may purchase either bulk wine or bulk
distilled spirits for purposes allowed under this chapter from any available source allowed
under federal law.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3. new text beginREVISOR'S INSTRUCTION.
new text end

new text begin The revisor of statutes shall change the term "farm winery" to "craft winery" in
Minnesota Statutes and Minnesota Rules.
new text end